People Patterns uses Behavioural Economics as a new source of advantage for innovative businesses. Email me bri@peoplepatterns.com.au to unlock the secrets of consumer behaviour for your business or follow the latest on Twitter @peoplepatterns.

Monday, September 10, 2012

Behavioural lessons from one of the best websites

My heart began to race. It was the last one and I knew there were four other interested buyers. No time to muck around, I better go in for the kill. Where's my credit card?Welcome friends to the world of booking accommodation online, a goldmine of examples of behavioural economics applied to the customer experience.Let's look at just three of the techniques used by one of the best exponents, Booking.com.

Sample listing from Booking.com

Create a sense of urgencyNo surprise, but part of getting customer commitment is a sense of urgency. Urgency comes from our fear of missing out, so this is how Booking.com use it;

Notice that the number of rooms left is displayed next to the City View room deal. Trust me, when it gets down to 1 you jump pretty quickly. Chances are you will even stop looking for reviews in your rush to secure the room - the overall rating will do.

Create a sense of normalcyAs much as we deny we are persuaded by what others do, we are. Being a normal part of the 'herd' is core to our functioning, so here's how Booking.com use it;

There are 6 other people looking at this hotel - good, because it means I have great taste. But worrying that there are six people looking and only three of the city rooms available! Urgency strikes again.

Last booking - others have trusted this hotel enough to book

Guest reviews - whilst the impartiality of reviews may be questioned, they do carry psychological weight because they are ostensibly written by people like us

Create a sense of valueWe need to make estimations of value whenever we are looking to buy. If the business doesn't control how its price is contextualised we will rely on whatever's in our head - dangerous for any business. You must therefore anchor the prices relative to others. For example, carry more expensive options to encourage sale of the cheaper option, and always list your original price along with its marked down amount. Booking.com;

Notes that the price for the City View room has been marked down, and obviously so. No good just showing your 'sale price' if you don't also show the original because your customer may not understand how great a deal this is.

I've booked a lot of accommodation over the years and whilst there are many sites - Lastminute.com.au, Expedia.com, Wotif.com amongst them, I keep being drawn back to Booking.com for its interface and communication of information. Let me know if you agree that it is one of the best, and whether you have used similar behavioural techniques in your business.

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About Me

Hi! I'm Bri Williams and I run People Patterns, a consultancy specialising in buyer behaviour. I deliver benefits to you by tweaking the interactions you have with your buyers through the application of behavioural science. A marketer and consumer behaviouralist, I've worked across industries for over 15 years, am a specialist contributor to Smartcompany.com.au, facilitator, speaker and author. Contact me at bri@peoplepatterns.com.au to find out how to get your buyers to buy more.

Services available from People Patterns

People Patterns is about businesses getting their buyers to buy more through the application of proven techniques from behavioural sciences such as behavioural economics. By knowing the patterns, you can take the guess work out. Thin of it like "Magician's Secrets finally revealed", but for buyer behaviour!

Contact me via bri@peoplepatterns.com.au or 0408 392 173 to find out about what a difference this new perspective can bring. An obligation free chat could be the best thing you do for your business this year!